25.6%: CNH's cash fell by that much year over year, to $1.9 billion. Revenue moved the other way, edging up 2% to $4.8 billion. Net income dropped 35.2% to $138 million.
That is the filing's odd arithmetic. The top line is holding, but the money left after making and financing the equipment is shrinking. Net margin fell to 2.9% from 4.5%, while diluted shares declined about 1%.
CNH says the pressure came from several places at once, with South America doing much of the talking:
"The decrease was primarily driven by lower volumes and an unfavorable product mix in South America, the impact of tariffs, higher SG&A and R&D expenses, and lower joint venture results, partially offset by favorable price realization."
CNH, 10-Q, Aug. 3, 2026
Price realization helped, but it did not offset the list around it. Lower volumes and product mix hit the business alongside tariffs, operating expenses, and weaker joint-venture results.
The cost line makes the margin squeeze more concrete:
"As a percentage of net sales, cost of goods sold increased to 82.0% and 82.1%, respectively, from 79.4% and 80.1% in the prior-year periods, impacted by tariff costs and lower production volumes."
CNH, 10-Q, Aug. 3, 2026
In plain English, CNH kept roughly the same sales scale while spending more of each sales dollar on the goods themselves. That leaves less room for SG&A, research, interest, and everything else that sits below gross profit. The latest figures do not disclose a single cause for the cash decline beyond the broader operating and financing pressures.
Interest expense also rose: Industrial Activities recorded $41 million in the latest three-month period, versus $26 million a year earlier. CNH said higher interest rates more than offset the benefit from lower average debt balances. A smaller debt base did not produce a smaller financing bill in the reported comparison.
The annual record gives that compression some distance. Revenue rose from $13.1 billion in 2020 to $22.1 billion in 2023, then fell to $15.3 billion in 2025. Annual net margin was 10.3% in 2023 and 3.3% in 2025, so the latest 2.9% is not an isolated change in the company’s recent record.
Shares closed at $10.26 on July 31, down 18.8% over 12 months. At that price, CNH carries a 25.2-times price-to-earnings ratio based on the latest annual facts. The filing shows the contrast in simple terms: revenue held in this comparison, while tariffs, volumes, mix, and interest costs contributed to thinner earnings.
CNH's next reported period will put a fresh number against the current cost-of-goods-sold ratio, which stands at 82.0% and 82.1% in the disclosed comparisons.
CNH's 10-Q leaves 2.9% as the net-margin number to compare in the next report.